Maharashtra will not pay Rs 2,200 crore dues claimed by RGPPL: CM

Mumbai: Maharashtra will not pay Rs 2,200 crore dues claimed by Ratnagiri Gas and Power (RGPPL) but is ready to allow the company to sell its power from Dabhol plant to others, Chief Minister Devendra Fadnavis said on Thursday.

"It has been our stand that we will not pay the Rs 2,200 crore dues claimed by RGPPL. We have, however, decided to communicate to them that if they want to sell the power to others, we will give our consent to them," Fadnavis told reporters after a review meeting here with the officials of the company, Union minister Piyush Goyal and bankers.

RGPPL, a joint venture between GAIL and NTPC, shut the 1967 MW Dabhol power plant on account of severe gas shortage. The company had signed a long-term Power Purchase Agreement (PPA) with the state utility Mahavitaran to supply power at Rs 3.30 per unit.

"As per the agreement, if the company had to change its source of fuel, they were required to take our consent. However, they did not do that and the cost of power escalated to Rs 5.50 per unit.

"Our intention is clear, we will not purchase power at this high cost because after all we will have to pass on the burden to our consumers which we don't want to do," he said.

However, he said if the state receives assurance of getting the fuel (gas) at the pre-decided rates for the next three years, there are chances of its revival.

"If we are assured of getting gas at the pre-determined rates (at the time of the PPA), there are chances of its revival. Also, the LNG terminal being developed by GAIL can generate revenues to the tune of Rs 1200 crore for RGPPL, which is operating the terminal," he said.